§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer what estimate he has made of the revenue yield of restricting the value of the(a) employee pension contributions and (b) employer pension contributions to (i) the basic rate of taxation and (ii) 10 per cent. [146257]
§ Dawn PrimaroloEstimates of the full year yield for 2000–01 of restricting income tax relief for employees' and employers' contributions to occupational and personal pensions (including additional voluntary contributions) are given in the table. They do not take account of any behavioural effects which are likely to result from such changes.
572W
£ billion Yield from restricting income tax relief to: Relief for pension contributions 22 per cent. 10 per cent. Employees1 1.3 3.3 Employers2 1.9 5.3
1 Based on a projection, consistent with pre-Budget Report 2000, of the 1998–99 Survey of Personal Incomes and other survey and administrative data 2 Based on a projection, consistent with pre-Budget Report 2000, of figures compiled by the Office for National Statistics from a variety of sources